Relating to contractor warranties including by providing for the transfer of contractor warranties upon the passage of legal or equitable title in the property, requiring information relating to contractor warranties in real estate disclosure statements, making penalties applicable, and including applicability provisions

The bill provides that a contractor warranty shall survive the passing of legal or equitable title in the real property to any subsequent owner of the real property for the duration to which the warranty is unexpired. Current law requires a person interested in transferring real property including at least one but not more than four dwelling units to deliver a written disclosure statement to a person interested in being transferred the real property, including information relating to the condition and important characteristics of the property. The bill requires that the written disclosure statement also include information relating to unexpired contractor warranties received by the transferor, as provided in rules adopted by the real estate commission.6, a transferor of real property who violates the disclosure statement requirements shall be liable for the amount of actual damages suffered by the transferee, unless the transferor had no actual knowledge of the inaccuracy or exercised ordinary care in obtaining the information.8 provides that a contract seller who intentionally provides inaccurate information is guilty of a fraudulent practice. The bill specifies that the section of the bill requiring real estate disclosure statements to include information relating to contractor warranties applies to transfers of real property on or after the effective date of the bill.